The Narendra Modi government wants to keep petrol prices under check to shore up popular support ahead of a series assembly elections this year. Photo: Hemant Mishra/MintNew Delhi: India’s state-run oil retailers have been asked not to increase retail diesel and petrol prices and absorb a part of the losses due to the recent recovery in global crude oil, people with knowledge of the matter said. Companies, including Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp., will have bear a loss of up to Rs1 per litre on sale of diesel and petrol, the people said asking not to be identified as the matter is private. Prime Minister Narendra Modi’s administration wants to keep petrol prices under check to shore up popular support ahead of a series assembly elections this year. The oil ministry has been asked to prepare subsidy payments at different price points in case of a further run up in oil prices.

Source: Mint April 11, 2018 13:41 UTC